TRG Pakistan sells subsidiaries for $13m

TRG Pakistan has sold two of its indirect subsidiaries for an immediate consideration of $13 million. TRG’s share of the earnings will be $11.7 million since it owned 90 per cent share in the companies, according to a notification sent to the Karachi Stock Exchange on Monday.

It is estimated that the move will result in an accounting gain of $2 million for TRG.

The notification explained that there was a further earning potential of $0.5 million, realisable if the sold entities are able to achieve certain performance targets.

The two organisations contributed approximately $9.5 million in annual income, representing between 6 and 7 per cent of TRG’s consolidated earnings.

The two subsidiaries, Administrative Enterprises and Adminco, are engaged in processing healthcare claims on behalf of corporate and other institutional bodies.

The company stock price gained Rs0.11 to end at Rs4.2.

Published in The Express Tribune, August 3^rd, 2010.